FOREWORD BY THE HON. MINISTER

The Ministry of Tourism is charged with the responsibility of formulating tourism policy and coordinating the implementation of strategies aimed at developing the tourism sector. The sector is among the leading foreign exchange earners and a major generator of employment in Kenya contributing about 10% of the Gross Domestic Product. The sector has linkages with other sectors of the economy thus facilitating growth in those sectors. Tourism sector was instrumental in the realization of the goals set out in the Economic Recovery Strategy for Wealth and Employment Creation (2003-2007) and has once again been identified as one of the key six growth sectors in the economic pillar of Vision 2030. The first medium term plan (2008-2012)of the vision sets out specific goals for the tourism sector which include quadrupling tourism contribution to the GDP, doubling international arrivals and trebling revenue and increasing number of hotel beds by 2012. A number of flagship projects are envisioned to facilitate the realization of these goals. The Ministry in the spirit of the vision 2030 has set out a vision to make Kenya the destination of choice and a global leader in sustainable tourism with the mission of facilitating sustainable tourism for national development and posterity. This strategic plan is a result of critical synthesis and integration of the mandate of the Ministry as spelt out in the Presidential circular of 1st May, 2008 on the organization of Government and the targets for the tourism sector as contained in the vision 2030. The plan identifies key strategic issues and assesses the Ministrys strengths, weaknesses, threats and opportunities, culminating into specific strategies which will be pursued during the Plan period. I wish to take this opportunity to commend all those who gave their invaluable input and more specifically members of staff of the Ministry who worked tirelessly to produce this Strategic Plan.

HON. NAJIB BALALA MINISTER FOR TOURISM

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PREAMBLE BY THE PERMANENT SECRETARY The dynamic nature of tourism sector poses numerous and complex challenges which calls for clearly spelt out effective management tools. This strategic plan is one of such important tools that will assist the Ministry to achieve its goals within the medium term period. The plan identifies strategic issues and proposes strategies which will be implemented through a number of outlined activities. The strategic plan 2008-2012 aligns the Ministrys mandate, vision, mission as well as priorities outlined in the Kenya vision 2030 to ensure tourism sectors tangible contribution to the dynamism and transformation of the economy towards a globally competitive and prosperous nation. The plan lays out the path to be followed by the Ministry in collaboration with other tourism stakeholders in ensuring the achievement of the medium term goals set out in the vision 2030 Through stakeholders consultative process, nine strategic issues have been identified and will form the cornerstone of this strategic plan for the next five years. These are policy and legal framework for the sector; Diversity of tourism products and source markets; Marketing of tourism products and facilities; Tourism standards; Safety and security of tourists; financial resources for the sector; Human resource development and management; Tourism resource conflict and information management and research. The strategic plan will be implemented through annual work plans and will form the basis for identifying deliverables under the annual performance contracts. The strategic plan will also form the basis for the Ministrys budget proposals under the Medium term expenditure frame work (MTEF) budgeting process as well as the human resource planning. Successful implementation of this Plan calls for close collaboration and partnerships between the Ministry of Tourism and other Government agencies as well as with private sector stakeholders. The Plan will follow the approach enshrined in the vision 2030 where the economy is Government-led but industry-driven, thus, the Ministry will step up its coordination and facilitation role creating an enabling environment for the development of private sector and community-based initiatives. Finally, it is my sincere hope that this Strategic Plan will enable us, in collaboration with tourism stakeholders, effectively deal with the major challenges and address all the strategic issues in the tourism industry for its sustainability as well as facilitating the overall economic growth as envisioned in the Vision 2030.

REBECCA M. NABUTOLA PERMANENT SECRETARY

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EXECUTIVE SUMMARY

Kenya Vision 2030 is the countrys new development blueprint covering the period 2008 to 2030. It aims to transform Kenya into a newly industrialising, middle-income country providing a high quality life to all its citizens by the year 2030. The Vision has been developed through an allinclusive and participatory stakeholder consultative process, involving Kenyans from all parts of the country. It has also benefited from suggestions by some of the leading local and international experts on how the newly industrializing countries around the world have made the leap from poverty to widely-shared prosperity and equity.The Vision is anchored on three pillars: the economic, the social and the political. The adoption of the Vision by Kenya comes after the successful implementation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS) which has enabled the countrys economy revert back to the path of rapid growth since 2002, when GDP grew from a low of 0.6% and rising gradually to 6.1% in 2006 and 6.3% in the first quarter of 2007. The economic pillar aims to achieve an economic growth rate of 10 per cent per annum by 2012. Six priority sectors have been targeted to raise the national GDP growth rate to 10 Percent by 2012, Tourism has been listed as the leading player of the six sectors. Others include Agriculture and Livestock, Wholesale and Retail Trade, Manufacturing, Business Process Outsourcing and Financial Services. The social pillar seeks to build a just, cohesive and equitable social development in a clean and secure environment. The political pillar aims to realize issue-based, people centred, resultoriented and accountable democratic system that respects the rule of law, and protects the rights and freedoms of every individual in Kenyan society. The Kenya Vision 2030 is to be implemented in successive five-year Medium-Term Plans, with the first one covering the period 2008 2012. The Ministry of Tourisms Strategic Plan for fiscal years 2008/9 2012/13 takes into account the Ministrys commitment to achieve the tourism sector goals as spelt out in Vision 2030 and the Medium Term Plan (2008-2012). These goals are to: (a) (b) (c) increase international visitors from 1.8 million in 2007 to 3 million in 2012. increase average spending per visitor from Kshs 40,000 in 2006 to Kshs 70,000 by 2012. treble annual national earnings from Kshs 65.4 billion in 2007 to Kshs 200 billion by 2012.

The plan outlines the major strategic objectives to be implemented within the plan period and provides implementation strategies, activity implementation plans, monitoring and evaluation plan, financial requirements projections and proposes a new Ministry structure. The plan also envisages mobilisation of resources beyond Central Governments budgetary allocations and outlines some of the potential sources of funds and how they will be identified. It is projected that the Ministry will require an estimated Kshs. 116 billion to implement its strategies and activities over the Plan period.

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The Ministrys objectives and the requisite strategies needed to actualize the tourism sector goals are: Objective 1: To formulate and implement an appropriate policy and legal framework for the development of the tourism sector The objective will be achieved through the following strategies: Finalize and facilitate the enactment of the National Tourism Bill Operationalize the Tourism Act Harmonize and enhance coordination of tourism development and service delivery.

Objective 2: To develop new products and diversify source markets The strategies for achieving this objective are: Develop and diversify tourism products Broaden the source markets

Objective 3: To increase tourism revenue from Ksh. 65 Billion in 2007 to Ksh. 200 Billion by 2012 This objective will be accomplished by implementing the following strategies: Increase the number of international tourists from 1.8M to 3M Increase the number of domestic bednights from 1.8M to 3.6M Increase average spending per visitor from Kshs 40,000 to Kshs 70,000

Objective 4: To offer and maintain internationally accepted standards of tourist service The strategies for achieving this objective are: Review the hotel and restaurant classification criteria Coordinate compliance with regulations and standards

Objective 5: To enhance safety and security of tourists This objective will be accomplished by pursuing the following strategies: Develop capacity of the Tourist Police Unit (TPU) and Kenya Wildlife Service (KWS) rangers Enhance capacity of crisis management centre Coordinate management of beach activities

Objective 6: To enhance and sustain the financial resources for the tourism sector The strategies for achieving this objective are: Establish a sustainable funding mechanism for the sector Mobilize resources from external sources Improve efficiency of resource utilization

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Objective 7: To attract, develop and retain competent and motivated staff This objective will be accomplished by pursuing the following strategies: Upgrade skills in the workforce Rationalize staff capacity. Improve work environment Mainstream public sector integrity programme

Objective 8: To reduce tourism resource conflict This objective will be accomplished by pursuing the following strategies: Promote tourism area management Enhance community based tourism

Objective 9: To enhance tourism information management and research capacity This objective will be attained by pursuing the following strategies: Improve use of ICT in tourism sector Establish tourism research centre Enhance publicity and information flow on tourism

Implementation of the objectives and strategies outlined above will enable the Ministry to harness its resources and to take advantage of the opportunities existing in the dynamic tourism sector and address pertinent challenges as outlined later in this Plan. This will in turn propel the Ministry to higher levels of performance and realization of its mission and vision for the benefit of all stakeholders.

CHAPTER ONE: INTRODUCTION

1.1. Background Information The Governments key policy papers, particularly the Poverty Reduction Strategy Paper (PRSP), the Economic Recovery Strategy for Employment and Wealth Creation (2003-2007), and the National Development Plans (NDP) emphasized the need for efficiency and better management in the utilization of public resources to enable the Government achieve its strategic objectives of growth, productivity, and improvement in service delivery. The same objectives are emphasized in the Governments new strategy - Kenya Vision 2030.

Kenya Vision 2030 is an economic blueprint whose aim is to transform the Country into a

modern, globally competitive, middle income country, offering a high quality of life for its citizens by the year 2030. To achieve this goal, the Government intends to put in place measures that will raise the national GDP growth rate from the current 6% to 10% by 2012; create more employment opportunities; and bring more equitable development in all regions of the Country. The First Medium Term Plan (MTP) of the Vision 2030 identifies the key policy actions and reforms as well as programmes and projects that the Government intends to implement in the period 2008 2012 in order to achieve set national targets. In order to achieve these targets, the Government has identified six priority sectors namely tourism, agriculture, livestock and fishing, wholesale and retail trade, manufacturing, business process outsourcing (BPO) and financial services in which it intends to concentrate its efforts and resources. To address Kenyas economic growth challenges the six priority sectors have been targeted to raise the national GDP growth rate to 10% by 2012. These sectors make up 57 per cent of Kenyas GDP and account for approximately half of the countrys total formal employment. Tourism currently accounts for about 10 per cent of Kenyas Gross Domestic Product (GDP), making it the third largest contributor to the GDP after agriculture and manufacturing. It is also Kenyas leading foreign exchange earner generating about Ksh. 65.4 billion in 2007 up from 21.7 in 2002. Further, the sector is a major source of government revenue in the form of taxes, duties, license fees, entry fees among others. Due to tourisms linkage with other sectors, it has a very high multiplier effect on the economy, and as a result the capacity to stimulate demand for locally-produced goods and services, provide a wide market for agricultural products, promote regional development, and even create new commercial and industrial enterprises. Despite tourisms significant growth over the last five years, the sector continues to face a number of challenges which need to be addressed in order for the sector to attain its full potential and thus contribute effectively to the countrys development goals as envisaged in Vision 2030. These include insecurity, untapped regional and domestic tourism, narrow product diversity, inadequate hotel/bed capacity, inadequate skilled human resource research and development, inadequate infrastructure support and environmental issues, among others.

In order to implement Vision 2030 and the First Medium Term Plan all government Ministries, Departments and Agencies are required to formulate strategic plans which dovetails the two national development blueprints. The strategic plan will enable the Ministry of Tourism to examine the new contextual environment in which it operates; explore the factors and trends that affect the way it will perform its core functions; seek to meet its mandates and fulfil its vision and mission; frame strategic issues which must be addressed; and craft and implement strategies for responding to the pertinent issues.

CHAPTER TWO:

STRATEGIC DIRECTION AND INSTITUTIONAL REVIEW

The Ministry is responsible for the formulation, coordination and Administration of policy in respect to the tourism sector. This mandate is derived from the Presidential Circular No. 1/2008 of May 2008 and various Acts of Parliament. The implementation of the Strategic Plan (20082012), will therefore be guided by the Mandate, Vision, Mission, Core Functions and Values. 2.1 Mandate

The Mandate of the Ministry is the formulation, coordination and administration of policy with respect to Tourism in accordance with Presidential Circular No. 1 of May 2008 and various Acts of Parliament. Further, the Ministry of Tourism has the responsibility to provide an enabling environment for all stakeholders in the sector. 2.2 Vision

To make Kenya the destination of choice and a global leader in sustainable tourism. 2.3 Mission

To facilitate sustainable tourism for national development and posterity. 2.4 Core Values

In its endeavour to execute its mandate, the Ministry will be guided by the following core values: Quality service delivery to all tourism stakeholders Integrity, transparency and accountability in all operations. Professionalism within the sector Efficiency and effectiveness in utilization of resources. Social equity. Innovation and creativity Proactive leadership Team spirit among staff and other key stakeholders.

2.5 Core Functions of the Ministry Planning and Policy-making: Overall tourism policy formulation, implementation, monitoring and review in collaboration with stakeholders. Overall Co-ordination: Liaise and coordinate with international, regional and local institutions on tourism issues.

Resource Mobilisation: Internal and external resource mobilization in consultation with the Treasury for the development of tourism. Facilitation: Establishment of an enabling legal and regulatory framework, promotion of local and foreign investments, safety and security of tourists, and conservation of biodiversity. Marketing: Undertaking and facilitating of domestic and international tourism marketing activities in collaboration with stakeholders. Regulation and Monitoring: Setting standards for hotels and restaurants and regulating tourism enterprises with oversight authority in all tourism issues. Code of Practice: Collaborating with stakeholders in establishment and enforcement of codes of practice for tourism at all levels benchmarked on internationally accepted standards. Product Development and Diversification: Development of viable tourism products and promotion of community participation in tourism. Capacity Development: Coordinating capacity development and setting of standards in the hospitality industry. Research and Development: Undertake and coordinate research in the sector.

In addition, the Ministry is responsible for overall guidance and policy coordination for the following state corporations and organisations:a. Kenya Tourist Development Corporation (KTDC)

KTDC was established on November 1965 under an Act of Parliament, CAP 382. It is responsible for tourism facilities development by financing private investors. b. Kenya Tourist Board (KTB)

The Kenya Tourist Board was created under Legal Notice No. 14 of 17th February 1997. The Board is mandated to promote and market Kenya as a tourist destination internationally and locally. c. Catering and Tourism Development Levy Trustees (CTDLT)

CTDLT was established through the Hotels and Restaurants Act, CAP 494, which was enacted in 1972. Its main functions are to control and administer the Levy Fund. The mandate has been extended to establish and set standards for training institutions. d. Kenya Utalii College (KUC)

The Kenya Utalii College was established in 1975 through the Hotels and Restaurants Act, CAP 494, with the objective of enhancing professionalism and improvement of standards of services in the tourism and hospitality sector. e. Kenyatta International Conference Centre (KICC)

KICC was established as a state corporation through Legal Notice No. 77 of 9th July 2004 to promote conference tourism.

f.

Bomas of Kenya (BoK)

BoK was established in 1972 as a wholly owned subsidiary of KTDC, with the principal function of developing and promoting Kenya's cultural values. Its mandate includes the promotion of Kenya's rich cultural heritage as a tourism product, while ensuring that such development is sustainable. g. Hotel and Restaurants Authority (HRA)

The Hotel and Restaurants Authority was established under CAP 494 and is responsible for the regulation and standardization of hotels and restaurants. h. Tourism Trust Fund (TTF)

The Tourism Trust Fund is a joint initiative of the European Union and the Government of Kenya. It was established in December 2001 to broaden the range of commercially viable and economically sustainable tourism products and establish a sustainable base for marketing Kenya as a tourist destination. 2.6 Policy Priorities

The Ministry in implementing the strategies espoused in this plan will streamline the following policy areas: (a) Product Development and Diversification Kenya has traditionally been regarded and developed as a coastal (beach) and wildlife safari destination. The National Tourism Policy seeks to develop and diversify tourism products in Kenya. The strategies to develop and diversify tourism products will focus mainly on Eco- tourism; Conference Tourism; Sports; and Cultural Tourism. Potential exists for spreading tourism to new areas away from the most visited and at times crowded destinations. These areas include Lake Victoria, the Western Region, North Rift, Central, and North-Eastern Provinces. (b) Marketing and Promotion The image and perception of Kenya has, in recent past, been adversely affected by negative publicity. The strategies to counter the negative image and perceptions will be undertaken in the concerned overseas markets. Tourist marketing will be strengthened to promote upmarket tourism and wildlife safaris in order to gradually move away from low value package or mass tourism. Regional markets and especially those with good air links and to which Kenya can offer complementary rather than similar products will also be targeted. (c) Domestic Tourism Development Kenyas tourism products attract visitors from all over the world. However, most Kenyan nationals have not been able to experience the same attractions due to financial constraints, lack of tourism knowledge coupled with a paucity of programmes and packages that would enable

nationals to participate in domestic tourism. Strategically, the domestic market will be developed to form an enduring foundation of the demand for tourism facilities and services. (d) Safety and Security Security is a key consideration for tourists when selecting a holiday destination. Government will continually improve security for both visitors and residents. In order to counter any perception that Kenya is an unsafe destination, safety concerns will be closely monitored and addressed. (e) Tourism Resources Conflict The government will undertake various changes in policies and laws such as those relating to wildlife conservation and management, protection of endangered species; wildlife cropping; wildlife hunting; land ownership and land-use in order to minimize areas of conflict and contention. (f) Investment and Finance Kenyas unique combination of spectacular tourist attractions and liberalized economy makes it an ideal investment location, especially for investors interested in the development of sustainable and quality tourism. In order to exploit fully this potential, the government shall continue to improve the investment climate that is capable of attracting both local and foreign investment. Incentives shall be offered to encourage investment in this sector, especially to long term investors. 2.7 Structure

The Ministry currently has two departments, namely, Department of Tourism (DoT) and Administration and Management Units. The Department of Tourism is the technical arm of the Ministry and is headed by the Director of Tourism who is answerable to the Permanent Secretary. It is responsible for all matters pertaining to product and market development, standardization, licensing, inspection and litigation. It also acts as the link between the Ministry and the private sector stakeholders. The Administration and Management Units provides support services in Finance, Human Resource, Accounts, Planning, Public relations, and ICT. All parastatals under the Ministry are semi-autonomous and are responsible to the Minister through the Permanent Secretary. The current structure is represented in Figure 1.

In view of the critical role that tourism is expected to play in achieving the goals of Vision 2030 and the challenges faced by the sector, there is need to review the current organizational structure. 2.8 Staff Establishment

The Ministry has a current staff complement of 185 (64.7%) of various cadres against an approved establishment of 286. This has been occasioned mainly by natural attrition and lack of replacements as a result of the freeze on recruitment in the Public Service. There is need for a workload analysis in order to arrive at an optimal complement.

CHAPTER THREE: SITUATION ANALYSIS

3.1 Performance Review

Tourism sector currently accounts for about 10 per cent of Kenyas Gross Domestic Product (GDP), making it the third largest contributor to the GDP after agriculture and manufacturing. It is also Kenyas leading foreign exchange earner generating about Ksh. 65.4 billion in 2007 up from 21.7 in 2002. The tourism sector is also a major source of employment. During the period between 2003 and 2007, the sectors contribution to employment generation grew at rate of 3 per cent annually, while earnings per employee rose by 18 per cent. The Tourism Recovery Program, a public-private partnership initiative which started in 2003 under the Economic Recovery Strategy (ERS), resulted in tremendous recovery for the country, with international visitors arrivals increasing from approximately 1 million in 2002 to about 1.8 million in 2007, an average growth of 12.5 per cent annually. Internally, domestic tourism registered a remarkable growth from 656,100 bed-nights in 2002 to 1,869,800 bed-nights in 2007 (Table 1). Table 1: Tourism Arrivals and Earnings, 2002 - 2007.Year Holiday/ Business visitors 819,124 866,102 1,132,000 1,269,200 1,313,549 1,520,700 Visitors on transit Other Visitors Total International (tourist) Arrivals 1,001,280 1,146,102 1,360,700 1,479,000 1,600,541 1,816,800 Bed nights in 000 by Residents of Kenya 656.1 738.7 1,190.3 1,129.6 1,374.8 1,869.8 Forex Earnings (KShs Billion) 21.7 25.8 39.2 48.9 56.2 65.4

2002 2003 2004 2005 2006 2007

163,252 219,000 162,200 79,800 137,165 130,900

18,904 61,000 66,500 130,000 149,829 165,200

(Source: Economic Survey 2007 and 2008))

In qualitative terms the Ministry has formulated a comprehensive National Tourism Policy; facilitated private sector stakeholders participation in travel exhibitions; developed a website in Chinese language as part of the marketing effort; hosted the Africa Travel Association congress in Nairobi; participated in annual World Travel Market in London and the International Tourism Bourse in Berlin; launched cultural tourism activities in the country.

3.2

Environmental Scanning

The need to develop a roadmap for the Ministry requires a critical analysis of the key factors, both internal and external, that influence its success in achieving its mission and goals during the Plan period. This was accomplished through an assessment of both the external (PESTEL analysis) and the internal operating environments. 3.2.1 PESTEL Analysis The PESTEL framework categorizes the external environment influences into six factors: Political, Economic, Social, Technological, Environmental, and Legal. The outputs of the PESTEL analysis are the key opportunities (positive or favourable conditions existing in the environment) and threats (negative or unfavourable conditions). These outputs are summarized in Table 2.

Issues and/or developments that are likely to impact negatively or positively on the Ministrys capacity to achieve its objectives.1. Increased permanent migration to some countries 2. Interactions have increased spread of infectious diseases 1. Increased crossborder movements and interactions 1. Rapidly growing labour force. 2. Rising crime due to unemployment 3.Increasing social contacts across ethnic, regional and other facets 4.Increased protection of women and children 5. Population pressure on areas previously set aside for wildlife. 1. Growing adoption of ebusiness

1. Growing use of ICT and e-business 2. Global village phenomena 3. Expansion of air and water transportation 4. rapid change in technology 1. Adverse climatic changes 2. Increased involvement of environmentalists and NGOs in production, trade and tourism issues.

Internal Environment Analysis

The purpose of internal environment analysis is to identify key assets, resources, skills and processes of the Ministry that represent either strengths or weaknesses. Strengths are aspects of the Ministrys operations that represent a competitive advantage; that is, activities performed very well or resources that it controls. Weaknesses are activities which the Ministry is currently not doing well or resources that it lacks. The key strengths and weaknesses of the Ministry are summarized in Table 3. Table 3: Key Strengths and WeaknessesStrengthsUnique hospitality and diverse tourism products. Relatively secure destination Established tourist facilities Renowned tourist destination Strategic regional communication centre Trained staff in tourism operations

SWOT Analysis is a framework for generating strategic alternatives from a situation analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis classifies the internal aspects of an organization as strengths or weaknesses and the external situational factors as opportunities or threats.

CHAPTER FOUR: STRATEGIC ISSUES, OBJECTIVES AND STRATEGIES

4.1 Strategic Issues After an extensive analysis and review of the internal and external environment of the sector, the following strategic issues were identified. Strategic Issue 1: Policy and legal framework for the development of tourism

To realize the set goals and sustain tourism development, various policy changes need to be completed. The National Tourism Policy has already been formulated but the relevant tourism bill is yet to be completed. The Tourism Act is expected to be finalized within the current MTP. Objective 1: To formulate and implement an appropriate policy and legal framework for the development of tourism sector The objective will be achieved through the following strategies: Finalize and facilitate the enactment of the National Tourism Bill. Operationalize the Tourism Act. Harmonize and enhance coordination of tourism development and service delivery.

Strategic Issue 2: Diversity of Tourism Products and Source Markets. There is need to develop and diversify tourism products. The traditional beach and wildlife safari products, being rather passive products, are not in line with the changing travel trends and patterns where tourists want to have a multiplicity of activities and experiences. There is, therefore, need to facilitate development and promotion of other products such as eco-tourism, sports tourism, cultural tourism, conference tourism, shopping tourism as additional products. For a long time, the sector has been dependent on the traditional markets of UK and Western Europe. There is therefore need to focus elsewhere especially to markets in the Far East, Eastern Europe and North America. Objective 2: To develop new products and diversify source markets The strategies for achieving this objective are: Develop and diversify tourism products Broaden the source markets Marketing of Tourism Products and Facilities

Strategic Issue 3:

Tourism marketing will play a key role in helping to achieve the targets as set out in Vision 2030 and the MTP (2008-2012). There is need for new marketing campaigns to promote Kenyas flagship tourism products as and when these are introduced.

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Objective 3: To increase tourism revenue from Ksh. 65 Billion to Ksh. 200 Billion by 2012 This objective will be accomplished by implementing the following strategies: Increase the number of international tourists from 1.8M to 3M Increase the number of domestic bednights from 1.8M to 3.6M Increase average spending per visitor from Kshs 40,000 to Kshs 70,000

Strategic Issue 4: Tourism Standards Tourism has many components comprising the overall "travel experience." Along with transportation, it includes accommodation, food and beverage services, shops, entertainment, aesthetics and special events. It is not common for one business to provide the variety of activities or facilities tourists need or desire. This adds to the difficulty of maintaining and controlling the quality of the tourist experience. To overcome this hurdle the Ministry will work together with relevant stakeholders in order to ensure consistency in product quality and service delivery. Objective 4: To offer and maintain internationally accepted standards of tourist service The strategies for achieving this objective are: Review the hotel and restaurant classification criteria Coordinate compliance with regulations and standards

Strategic Issue 5: Safety and Security of Tourists Security is a key consideration for many tourists when selecting a holiday destination. Kenya continues to be perceived as an insecure destination. The Ministry needs to work with relevant stakeholders to ensure that the security status in the country is enhanced and maintained. Objective 5: To enhance safety and security of tourists This objective will be accomplished by pursuing the following strategies: Facilitate capacity development of the Tourist Police Unit and KWS Enhance capacity of the crisis management centre Coordinate management of beach activities

Strategic Issue 6: Financial Resources Over the years, the Ministry has operated on limited financial resources from the government and development partners. There is need to establish a sustainable funding mechanism for tourism to support product development and facilities. Objective 6: To enhance and sustain the financial resources for the tourism sector. The strategies for achieving this objective are: Establish a sustainable funding mechanism for the sector

Strategic Issue 7: Human Resource Development and Management There is need to create an enabling environment that will promote the achievement of the Ministrys goals and objectives. This includes acquisition of necessary facilities, recruitment and retention of skilled manpower, provision of commensurate incentives and training opportunities. In addition, since the Ministry has responsibility for managing the transformation of Kenyas tourism sector, it must address the human resource needs for the entire tourism sector. Objective 7: To attract, develop and retain competent and motivated staff This objective will be accomplished by pursuing the following strategies: Upgrade skills in the workforce Rationalize staff capacity. Improve work environment Mainstream public sector integrity programme

Strategic Issue 8: Tourism Resource Conflict Inadequate involvement of local communities has led to resentment and undermining of the tourism product and wildlife conservation. Considering that most wildlife in Kenya is outside the established parks and reserves, it is vital that the local communities benefit from wildlife conservation and tourism. Objective 8: To reduce tourism resource conflict This objective will be accomplished by pursuing the following strategies: Promote tourism area management Enhance community based tourism

Strategic Issue 9: Information management and research capacity In todays rapidly changing environments the need for up to date information to make timely and high quality decisions is vital not only to planners and marketers but also to the customer. In addition successful destinations are keeping up with the fast changing tourism trends through research. There is therefore need for sector to invest in state-of-the art technology and to intensify tourism research. Objective 9: To enhance tourism information management and research capacity This objective will be attained by pursuing the following strategies: Improve use of ICT in the tourism sector Establish a tourism research centre Enhance publicity and information flow on tourism

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CHAPTER FIVE: PLAN IMPLEMENTATION STRATEGY

5.1 Introduction Strategy implementation is the action stage of strategic management. The activities central to strategy implementation are establishing annual objectives; devising policies; allocating resources; reviewing the current organizational structure; revising reward and incentive systems; minimizing resistance to change; developing a strategy-supportive work environment and corporate culture; adapting operations, delivery; and information systems; and developing an effective human resource function. 5.2 Action Plans Action plans indicate what activities are going to be undertaken, by who, when, with what resources and the expected results. Action plans serve as a link between plan formulation and monitoring and evaluation; help in both the appraisal of performance and in the identification of any remedial actions, and contribute to better motivation of staff through explicit assignments of responsibilities for implementing and monitoring programme. This section summarizes the sector objectives, corresponding strategies, activities, and the desired outcomes (Table 5). Detailed action plan matrices are presented in Annex 1.

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Table 5: Strategies, Activities and Outcomes

Strategy Activities Outcome/Output

Objective 1: To formulate and implement an appropriate policy and legal framework for the development of tourism sector 1.1 Finalize and facilitate the enactment of the National Tourism Bill 1.1.1 Validate draft policy 1.1.2 Draft national tourism bill 1.2 Operationalize the Tourism Act 1.2.1 Sensitize stakeholders 1.2.2 Establish relevant structures and institutions 1.3 Harmonize and enhance coordination of tourism development and service delivery Tourism policy in place Draft tourism bill Tourism Act Level of awareness Structures and institutions in place Improved Service Delivery Public-private sector consultative forum Harmonized operations Inter-ministerial roundtable forums Improved tourism service delivery New collaborations/linkages

8.2 Enhance community based tourism

SMEs strengthened CSR Plan in place

8.2.3 Design and implement a CSR Plan among communities

Objective 9: To enhance tourism information management and research capacity 9.1 Improve the use of ICT in tourism sector 9.1.1 Review status of ICT application in the sector 9.1.2 Sensitize stakeholders 9.1.3 Coordinate implementation of viable recommendations Status report Number of stakeholders sensitized Number of recommendations implemented Improved service delivery

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Strategy 9.2 Establish tourism research centre

Activities 9.2.1 Set up a Research Centre 9.2.2 Collaborate with both national and international research institutes 9.2.3 Develop Tourism Satellite Account (TSA) project into a national account tool

9.3 Enhance publicity and information flow on tourism

Availability of current information Well informed public and potential tourists

5.3

Recommended Structure

In order to support the implementation of this plan, the Department of Tourism should be split into two directorates Product Development and Marketing and Domestic Tourism, each headed by a Director, who reports to the Tourism Secretary. The Product Development and Marketing Director will be responsible for coordinating product development and marketing activities within the sector. The Director of Domestic Tourism will be responsible for exploiting the domestic and regional market. In order to further improve efficiency, a new parastatal, Kenya Tourism Commission, will be formed. The Commission will be the main regulator and will be in charge of standardization, licensing, inspection and litigation. The recommended structure is presented in Figure 2.

Product and Market Development for regional and domestic tourism

CHAPTER SIX: RESOURCE MOBILIZATION

6.1

Resource Mobilization

Budget allocation to the tourism sector has over years been on recurrent expenditure while the share of development expenditure has been going down and thus affecting investment and service delivery. The successful implementation of this strategic plan, therefore, will depend not only on the quality and commitment of the Ministry staff but also on the availability and efficient utilisation of the resources. The total estimated budget to finance the implementation of this plan for the five year period is Kshs. 116 Billion. The Ministry expects to finance this budget through the Appropriation In Aid (AIA),the annual Treasury allocations and other sources. It is anticipated that the Ministry will seek collaborative contributions from the private sector stakeholders. Though the Ministry may not be in a position to develop an independent funding strategy from the rest of the Government, it will look for innovative ways of attracting the necessary resource inflows in support of the plan implementation. The Ministry will also lay emphasis on efficient utilisation of available financial resources on prioritised activities. In this regard, the Ministry will work methodically in its annual planning and budgeting exercises both inhouse and at the Ministerial stakeholders Forum to ensure that adequate financial resources are obtained from the following sources: budgetary allocations; multilateral development agencies;bilateral sources; and contributions from private sector and NGO sources. The Ministry will also pursue the following strategies in its endeavor to diversify and strengthen the tourism revenue base: Lobby for retention of HRA revenue; Enhance Public/Private partnership in marketing initiatives; Bilateral Development Partners/Donor support; Prudent management through activity-based budgeting; Linking budgeting and planning through MTEF and MPER processes Adoption of IFMIS ; Enforce efficient use of supplies and other resources; and Use of fuel efficient vehicles.

A sustainable source funding will be established under the control of KTDF and shall comprise: Money payable as appropriation for the purpose of the Act; Levies, fees, and other moneys paid under the proposed Tourism Act; Donations, Loans and other financial assistance approved by the Minister for Tourism and Minister for Finance; Any other monies that may vest in or accrue to the Fund , whether in terms of the new Tourism Act or otherwise; and Other methods of collecting funds to be paid into the Fund shall be explored.

Objective 9: To enhance tourism information management and research capacity

Activities 9.1.1 Review status of ICT application in the sector 9.1.2 Sensitize stakeholders Year 08/09 3,000,000 5,000,000 5,000,000 Year 09/10 Year 10/11 Year 11/12 Year 12/13 Total 3,000,000

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9.1.3 Coordinate implementation of viable recommendations 9.2.1 Set up a Research Centre 9.2.2 Collaborate with both national and international research institutes 9.2.3 Develop Tourism Satellite Account (TSA) project into a national account tool 9.3.1 Publish ministrys newsletter and other publicity materials 9.3.2 Update Ministrys website 9.3.3 Coordinate media coverage of ministrys activities Sub-total Grand Total Cost of Planned Activities

CHAPTER SEVEN: MONITORING AND EVALUATION

The Ministry will apply both quantitative and qualitative techniques to monitor the planned performance of its respective Departments and Sections. The major techniques of monitoring and evaluation that shall be used are variance analysis, ratio analysis, and budgets. 7.1 Variance Analysis

The Ministry shall simply compare the standards given in the objectives with the actual results and any difference or variance will be identified. As a consequence of the analysis of variances and identification of causes, the Ministry shall take appropriate remedial actions. 7.2 Ratio Analysis

Ratio analysis is concerned with efficiency related objectives. The ratios will be calculated quarterly, semi-annually and annually and the actual results compared with the standards (targets) that were established in the objectives. The differences between targets and actual levels will be identified and further analysis carried out to identify causes of the differences. This analysis will invoke appropriate remedial action. 7.3 Budgetary Control

Under this monitoring and evaluation process, actual results will continually be checked against planned results and variances carefully investigated. If necessary, action plans will be changed so that they are brought in line with the budgeted results or the budget will be amended to take account of new developments. 7.4 Monitoring and Evaluation Framework

It is envisaged that the Central Planning Unit will be responsible for the M&E function. One of the key elements of a Strategic Plan is the process for monitoring and evaluating performance. By having a systematic way for comparing actual performance to planned performance, the effectiveness of the actions is determined. The M&E System, which will work in tandem with the Implementation Matrix, will be designed to ensure the following: Establishment of clear reporting schedules, channels and feedback mechanisms on an on-going process requiring time and commitment of all; Candid specifications of the roles of individuals submitting or receiving the documents taking into consideration internal progress reports, and an annual report card; and Clear statement and definition of action plans to be taken on specified monitoring results in terms of resource adjustment, change of strategy or review of programme/activity.

For effective implementation of this Plan, teams will be formed under various standing committees. The first will be a management team comprising the Permanent Secretary and heads of department and specialized unit heads. The team will meet regularly under the chair of the Permanent Secretary to discuss and coordinate the implementation of the plan. The second will be the Departmental team comprising heads of department and section

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heads. The team will meet frequently to discuss departmental plan implementation, tasks and strategies, and feed its deliberations into the management team meetings. Lastly, standing committees will be established to handle specific cross-cutting issues. The ministry will strengthen the M & E unit by providing it with the necessary resources and training its staff. The M & E system developed will consider the following key areas of concern measuring the physical progress; determining financial status; quality control and quality assurance; specifications and standards of the outputs; environmental considerations; and other factors specific to the programmes and projects. 7.4.1 Progress Reports These will be prepared by the implementing departments and be undertaken regularly or coincide with budgetary cycles. The Central Planning Unit will act as the internal consultancy to assist the departments in completing and coordinating the reports prior to presentation. Reports will describe actions taken by departments toward achieving specific outcome and strategies of the plan and may include costs, benefits, performance measures and progress to date. Highlights of major achievements will be posted on the website. 7.4.2 Annual Report Card At the end of each year, a report will be produced and released to the public. It will evaluate the years activities related to the plan and indicate how the Ministry has implemented the plan. 7.4.3 Linking M&E to Performance Management and Staff Appraisal For the implementation of the Plan to be effective the M&E will be an integral part of the Ministrys performance management system and will be linked to staff appraisal and reward. Officers and Departments/Divisions that meet or exceed their plan targets will be given commendation and rewarded accordingly. During the Plan period, when the Ministry will have established system-wide ICT networks, automated performance management systems such as Balanced Scorecard will be explored in order to improve the effectiveness of the M&E system.

2.2 Broaden the source markets

December 2009 March 2010 and continually

Market study report Number and size of new markets Increased volume and value of business

Market study report 2 20M 2 30M 2 40M

Kshs 100 M

MoT

Increased volume and value of business

KTB

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Objective 3: To increase tourism revenue from Ksh. 65 Billion to Ksh. 200 Billion by 2012Strategy 3.1 increase the number of international tourists from 1.8M to 3M Activity 3.1.1 Increase number of quality tourist facilities Outcome/Output number of international tourists increased Time frame January 2009 and continually Performance Indicators Number of new beds available Target for 2008/09 5,000 Target for 2009/10 5,000 Target for 2010/11 5,000 Target for 2011/12 5,000 Target for 2012/13 5,000 Responsibility MoT Investors 2,000,000 2,250,000 2,550,000 Assumptio ns/ Risks Investor interest Political stability Budget (Kshs) 11.25M

Number of international tourists 3.1.2 Increase MICE (meetings,incenti ves,conferences & exhibition) facilities Increased MICE capacity January 2009 and continually Number of new MICE facilities Upgraded KICC to a convention centre number of new routes